What is Employee Value Proposition (EVP) and why is it important?

Approximately 77% of companies say their Employee Value Proposition (or EVP) positively impacts their employee engagement. 76% also say it improves retention, and 78% say it improves the recruitment process.

Is your EVP having this kind of influences on your company? Are you unsure of how to create a better one for your employees – new and old?

Answered below are some of the most commonly asked questions regarding EVPs. You’ll also find some tips on how you can improve your company’s existing EVP or build a new one from scratch.

What Is an Employee Value Proposition?

The term “Employee Value Proposition” describes the collection of rewards, benefits, and incentives that a company offers to its employees in exchange for high levels of engagement and great performances. It’s essentially a response to the question: “What’s in this for me?”

An EVP should include everything that an employer does to attract great employees and retain them long-term. It’s not just about offering incentives to get people in the door. It also involves keeping up the rewards and benefits so that people want to stick around and the employee attrition rate stays low.

Why Is an EVP Important for Businesses?

Some business owners might question why they need a strong Employee Value Proposition to create a high-performance team culture at their company. Isn’t it enough just to pay employees well and offer them health insurance? What more could they possibly want?

The truth is that a well-built EVP offers lots of benefits, far more than what a decent paycheck can provide. The following are some of the top reasons why an EVP is important for your business:

Attract Better Candidates

In 2021, the number of job vacancies in the UK reached a 20-year record high.

If you’ve been struggling with hiring talent at your company, your EVP might be part of the problem. By improving the benefits and incentives you offer to your employees, you’ll find that you have an easier time attracting highly qualified and talented individuals to your team.

Differentiate Company from Competitors

You might also be having difficulties in the hiring department because your EVP is not as impressive or clearly defined as those of your competitors. If other companies in your area and industry are offering better benefits and more appealing perks, you’re going to lose out on your chance to win over skilled employees.

Improve Employee Retention

Not only will you draw in talented employees when you have a better EVP, but you’ll also be more likely to keep those employees around long-term.

You can easily spend thousands of dollars recruiting a new member to your team. If you have to do this every couple of years (or even, heaven forbid, multiple times per year) because your employees aren’t sticking with you, that’s going to eat into your company’s budget and mess with your overall profitability.

Increase Engagement and Innovation

When employees are compensated well and are incentivised to stick with their jobs long-term, they’re often more engaged, more innovative, and more productive.

Do you want your team members to put their best foot forward day after day? Make it worth their while for them to do so. Pay them fairly, offer great benefits, and make sure they fully understand all the perks and rewards that are available to them in exchange for great performance.

Increase Employee Advocacy

Some of the best brand ambassadors for your company are your current employees. When you offer great benefits and have a strong EVP, your employees will be more inclined to promote your business and encourage others to apply when you have open positions.

These days, lots of job seekers want to hear from current employees before they agree to work with a particular company. If your employers are giving the business (and you as a leader) glowing reviews, that’s going to reflect well on the company and help you attract great applicants.

How to Improve Your Company’s EVP

Has it been a while since you evaluated your company’s EVP? If so, that might explain why you’re struggling with a high employee turnover rate or are having a hard time retaining members of Gen Z at work.

Here are some ideas that can help you level up and strengthen your current EVP:

Gamified Engagement

A good starting point when improving an EVP is to gauge the current engagement level at your company. This helps you see where your employees currently stand and identify how your EVP could be better.

Gamified engagement tools, including online surveys and polls, are easy and fun for employees to use. They can quickly answer questions and provide feedback on the company’s current offerings, as well as suggestions for improvement in the future.

Review Meetings

Conducting review meetings is another easy way to touch base with your team, find out what they like about the company’s current EVP, and learn what they would like to see change in the future. You can hold these meetings as a group or, if you have a small enough team, meet with members individually. 

Culture-Match Surveys

Culture-match surveys can be administered to potential employees as soon as they apply for the position. These surveys help you to determine whether or not each person’s individual needs and goals line up with the current company culture and EVP.

You can also use the data gleaned from these surveys to make improvements to your EVP. If you find that ideal candidates are attracted to certain benefits and rewards, you will know that you need to keep this – or perhaps build upon them – to make your EVP better.

Career Development

If your EVP doesn’t currently include any kind of career development programs, consider adding some. Employees will generally be more interested in sticking with a company for the long haul if that company gives them the tools they need to get better at their jobs and expand their skill sets.

Raises

Of course, we can’t talk about building a better EVP without also talking about pay raises.

Take a step back and ask yourself if you are paying your employees fairly. Then, do some research to see what your competitors are paying their employees. If there’s a big disparity, you may need to make some adjustments.

Factor in economic fluctuations, too, to ensure you’re paying your employees a living wage.

Office Upgrades

Office upgrades can help you to provide more value to your employees, too.

By making the work environment more inviting and comfortable, you’ll improve team members’ office experience. They’ll find it easier to focus and be productive if the office isn’t drab, harshly lit, or outfitted with uncomfortable, non-ergonomic furniture.

Tips for Building an EVP

Sometimes, it’s better for productivity, performance, and company culture to just create a new Employee Value Proposition from scratch. If this feels like the right move for your HR team, start with these tips for building an EVP:

Start with Salary

When they’re looking for a job and see a new listing, most people start by checking out the salary.

If people don’t feel that you pay your employees fairly, especially if you’re asking for a great deal of skill and experience, they’re going to look elsewhere. Use the salary calculation tips mentioned above to figure out a salary that’s fair and attractive to potential new hires.

Consider Rewards and Benefits

Now, get into the rewards and benefits you can offer your team. Don’t be afraid to think outside the box, either.

For example, can you offer regular wellness activities or access to wellness services like massages, personal training, etc.? What about discounts at local businesses (gyms, restaurants, retailers, etc.)?

Consider perks that allow for better work-life balance, too. For example, can you give employees the option to work remotely when needed or to set their own office hours?

Address Company Culture

According to 63% of UK adults, the company’s culture is among the main reasons why they stay at their current job. 70% also say they’d look for a new job if their company’s culture changed.

When crafting your EVP, be clear about the activities, events, and offerings that separate your company culture from your competitors. People should be able to see your company’s mission and values reflected in what you offer your team members.

Put It in Writing

Your company’s EVP should be clearly defined and put in writing. This makes it easy for you to reference and ensure you’re following through on the promises you’ve made to your employees. It allows for easy and regular reviews, too.

Start Working on Your Company’s EVP Today

Is it time to make some changes to your company’s EVP? Are you ready to create a new and improved one that helps you attract Gen Z employees, in particular?

If so, keep the advice outlined above in mind so you can level up your HR strategy and create a better company culture for the future.

For more help recruiting talent, check out Udrafter – the number one marketplace for hiring interns, supporting early talent, and setting your business up for long-term success.